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Box , Boone, IA , or email us at subhelp macworld. Macworld is an independent journal not affiliated with Apple, Inc. The 5 biggest takeaways of Apples Q3 quarterly earningsApple posted record Q3 revenue driven by huge growth in China.
This means that while we can get a good idea about the companys three major product categories, the first quarter of sales for the Apple Watch are a mystery. Cook cops to it, too: We made the decision back in September not to disclose the shipments on the watch, and that was not a matter of not being transparent, it was a matter of not giving our competition insight [on] a product that we worked hard on, he told analysts today.
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But while Apple doesnt want to reveal too much about how the Apple Watch is doing, Cook did say repeatedly that even with the com-panys inability to produce enough watches to fulfill demand, Apple sold more of the devices than the com-. A nother quarter, another happy financial report go. The companys third financial quarter is rarely the place where you expect to see recordsin Apples largely seasonal business, the period from April to June is generally the sleepiest quarterbut there was still a lot to be gleaned from the numbers, and from the following hour-long call with financial analysts.
Here are the most interesting things to come out of the recent federally mandated disclosure of financial data from Apple.
Which means that Slice data was wrong. And so as I look at all of these things, we feel really great about how we did. This isnt quite the same as one of Amazons famous Bezos Charts go. But its closeApples just saying that it beat its own internal projections, which for all we know, couldve been unrealistically small.
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Still, knowing that everyone is hungry to hear about how the Apple Watch is doing, Cook tried to toss in a few more tidbits that provide information without giving away many details. Refuting reports that Apple Watch sales started off huge and then tanked, he said that June Apple Watch sales were higher than April and May. I realize thats very different from some of whats being written, he said pointedly, but June sales were the highest. Cook also said that the change in Apples Other Products accounting line from last quarter to this quarter shouldnt be the source of estimates about the size of the Apple Watch market, because the aggregate balance of that category is shrinking.
But Cook seemed particularly excited that Apple has learned a lot about the [Apple Watch] buying experience and as a result, plans to expand their sales channel before the holiday. Were con-vinced that the watch is going to be one of the top gifts of the holiday season. Sure, that might be hypebut it also sounded to me like Apple was genuinely unsure how the Apple Watch would play with consumers, and now that its seen sales figures and customer-satisfaction numbers, its convinced that the Apple Watch.
The massive effort the company is putting into China is certainly paying off: While the last two quarters have showed 75 percent year-over-year growth, Apple more than doubled its China revenue in this most recent quarter, compared to the same quarter a year ago.
With the Chinese stock market and economy being called into question in recent days, it was interesting to hear Cook defend the market to financial analysts.
He made it clear that Apple believes China will ultimately be Apples largest market. Its already surpassed Europe in total revenue. Were not changing anything [in China]we have the pedal to the metal on growing Apples retail presence, he said, and pointed out that with LTE networking only avail-able in 12 percent of China, theres an incredible smartphone future in the country as broadband speeds.
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As Cook has mentioned several times before, perhaps the biggest opportunity in China is the rapidly growing middle class. Apple Event, September Apple Special Event, March Apple Special Event, October Apple Special Event, September Apple Education Event, January Apple today presented the new iPhone 4 featuring FaceTime, which makes the dream of video calling a reality, and Apple's stunning new Retina display, the highest resolution display ever built into a phone, resulting in super crisp text, images and video.
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